CoinDesk
Swift is preparing live tests of a blockchain-based shared ledger with 17 major banks, including UBS, HSBC, Wells Fargo, Citi, BNP Paribas and BNY, aiming to enable round-the-clock cross-border payments using tokenized deposits. The platform, announced on Thursday, is designed to let banks move customer funds overnight and on weekends, with final settlement still flowing through existing payment rails rather than replacing them.
The ledger is built as a shared layer for tokenized deposits issued on the banks' own books, with support for regulated digital money and tokenized assets across multiple blockchains. Swift, the bank-owned messaging network used by more than 11,500 financial institutions, first flagged the project in October as a way to settle transactions involving stablecoins and tokenized assets alongside current payment infrastructure.
Why it matters
The move is the most concrete signal yet that incumbent cross-border plumbing is choosing compatibility over displacement. By keeping final settlement on existing rails while adding an always-on tokenized layer on top, Swift is positioning bank-issued digital money as a counterweight to stablecoins, which already settle outside banking hours but face regulatory and compliance friction. "With our new ledger capability, we're extending the trust and stability of established finance into the frontiers of digital money," said Thierry Chilosi, Swift's chief business officer. Tokenized deposits keep deposits inside the regulated banking perimeter, which is the structural argument for choosing them over a public stablecoin.
Market impact
The pilot lands against a mixed backdrop for digital money. Stablecoin market cap fell to $312B in June, its largest monthly drop since the TerraUSD collapse, while tokenized equity volumes surged 145% to a record $3.86B over the same period, a divergence that underlines how tokenization of traditional assets is outpacing the stablecoin complex. Swift noted that 75% of payments on its network already reach beneficiary banks within 10 minutes; the new ledger is meant to extend that always-on experience to regulated digital money.
Frequently asked questions
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What is Swift's new blockchain ledger designed to do?
The shared ledger is built to let 17 major banks move customer funds overnight and on weekends using tokenized deposits, with final settlement still flowing through existing payment rails rather than replacing them.
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Which banks are participating in the Swift blockchain pilot?
The pilot includes UBS, HSBC, Wells Fargo, Citi, BNP Paribas and BNY, alongside 11 other financial institutions preparing to test live transactions on the shared ledger.
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How does the Swift ledger differ from stablecoin-based settlement?
Tokenized deposits on the Swift ledger keep money inside the regulated banking perimeter, whereas stablecoins settle outside banking hours but face regulatory and compliance friction. Swift positions bank-issued digital money as a counterweight to public stablecoins.
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Will the new ledger replace Swift's existing payment infrastructure?
No. Swift has said the blockchain layer works alongside current payment rails, extending always-on availability for regulated digital money while keeping final settlement tied to established systems.
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What is the broader market context for this launch?
Stablecoin market cap fell to $312B in June, its largest monthly drop since the TerraUSD collapse, while tokenized equity volumes surged 145% to a record $3.86B, a divergence that underscores growing institutional interest in tokenized traditional assets.
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